You don't mention what mode your TX is in (CE or FCC) so check to see if your TX is in CE mode? Turn on, single beep indicates CE, double beep indicates FCC. You want to be in FCC for greatest range. Look in the manual for how to change it. You get greater range with FCC mode.
Good point. I did actually switch to FCC mode as soon as I set it up. I hear the 2 beep confirmation when I turn on the transmitter. This morning I raised the max altitude to 3000 ft and max distance to 5000 ft. However, when I tried a test flight I still get only 1000-1100 feet. Will try a new location later to see if it makes a difference.